Honestly how many of those clicks that you are charged for are real potential customers. I don't know about the rest of you guys but the volume of bounces on the ppc items we bid on are between 30%-50% If they were just price checking they'd have to click one more page to get that info. Fraud .. yes I think so, but what can you do about it. nothing.
Not necessarily. what you are saying is that it would cost 66% to gain 33% and of that generally 20-30% is to cover operating costs, employees, taxes and general overhead. So .. worst case you're really only making 3%.
Haven't seen an ecommerce company make it long term that wasn't making at minimum 25% profit from each sale (after marketing costs).
Unless of course they are doing it from home on ebay and not paying taxes.
My philosophy is right along the lines of Whitey
I'd much rather spend that marketing money sponsoring events .. etc, and hiring fantastic customer service reps than doing SEO and PPC.